Woodside, BHP sign binding merger deal

Australian LNG firm Woodside said it has signed a binding merger agreement with BHP’s oil and gas business.

The signing of the share sale agreement follows the merger commitment deed revealed in August.

Under the deal, Woodside will acquire the entire share capital of BHP Petroleum International in exchange for new Woodside shares.

On completion of the merger, Woodside will issue new shares expected to comprise about 48 percent of all Woodside shares on a post-issue basis as consideration for the acquisition of BHP Petroleum.

Moreover, the merger would create a global top 10 independent energy company by production and the largest energy company listed on the ASX, according to Woodside.

Also, the combined company would have a high margin oil portfolio, long life LNG assets and the financial resilience to “help supply the energy needed for global growth and
development over the energy transition.”

Woodside CEO Meg O’Neill said the merger would deliver “enduring value” for Woodside shareholders but also BHP shareholders that receive Woodside shares under the merger.

“Woodside and BHP’s respective oil and gas portfolios and experienced teams are better together. The combination will deliver the increased scale, diversity and resilience to better navigate the energy transition,” she said.

Woodside and BHP have also executed an integration and transition services agreement which provides for the planning of post-completion integration activities.

The two firms expect to complete the merger in the second quarter of 2022, subject to approvals, including by Woodside shareholders.

Most Popular

Singfar orders LNG bunkering duo in China

Singapore-based shipowner Singfar has ordered two large LNG bunkering vessels from China's Huangpu Wenchong Shipbuilding.

Precious Shipping’s new Malaysian JV targets LNG and LPG carriers

Precious Shipping's new Malaysian joint venture with Emstraits Navigation and Lianson Fleet Group will be looking to acquire liquefied natural gas (LNG), liquefied petroleum gas (LPG), and crude tankers.

Noatum Maritime welcomes first LNG-powered PCTC in its fleet

AD Ports Group’s Noatum Maritime has taken delivery of its first LNG-powered pure car and truck carrier (PCTC).

More News Like This

Woodside updates on Louisiana LNG construction work

Australian LNG producer Woodside has released the latest construction update for the first phase of its Louisiana LNG project.

Woodside, China Resources Gas seal long-term LNG supply deal

Australian LNG player Woodside has signed a long-term LNG supply deal with China Resources Gas International.

Woodside expects first Scarborough LNG cargo in H2 2026

Australian LNG player Woodside expects to ship the first cargo from its Scarborough and the second Pluto LNG train project in the second half of 2026.

Woodside in advanced talks to sell Louisiana LNG stake, CEO says

Australian LNG player Woodside is in "well advanced" negotiations with "high-quality counterparts” to sell up to 50 percent of its Louisiana LNG export project, according to CEO Meg O'Neill.